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List of Best Smart Beta ETFs in India 2026

Smart Beta ETFs have emerged as a growing subset of exchange-traded funds in India, offering rule-based strategies that tilt portfolios toward specific investment factors such as value, momentum, quality and low volatility. According to index performance data, smart beta strategies like the Nifty 200 Momentum 30 Index and Nifty Alpha 50 have delivered annualised returns above 20 % over five years, outperforming some traditional benchmarks in certain market conditions.

Top Smart Beta ETFs in 2026

Smart Beta ETF Stock Screener

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NameStocks (5)↓↓Sub-SectorSub-Sector↓↓Market CapMarket Cap↓↓Close PriceClose Price↓↓PE RatioPE Ratio↓↓1D Return1D Return↓↓1M Return1M Return↓↓6M Return6M Return↓↓1Y Return1Y Return↓↓PB RatioPB Ratio↓↓Return on EquityReturn on Equity↓↓ROCEROCE↓↓Dividend YieldDiv Yield↓↓Debt to EquityDebt to Equity↓↓Volatility vs NiftyVolatility vs Nifty↓
1.ICICI Prudential Nifty 100 Low Vol 30 ETFLOWVOLIETFEquityEquity372.61372.6122.6622.66--0.270.27-3.04-3.044.624.627.857.85------0.000.00--0.870.87
2.DSP Nifty 50 Equal Weight ETFEQUAL50ADDEquityEquity52.9152.91346.60346.60--0.380.38-1.20-1.208.388.3814.2214.22----------1.071.07
3.ICICI Pru Nifty Alpha Low- Volatility 30 ETFALPL30IETFEquityEquity49.8849.8827.6627.66--0.690.69-2.02-2.023.253.252.832.83------0.000.00--1.011.01
4.DSP Nifty Top 10 Equal Weight ETFTOP10ADDEquityEquity34.5534.5597.8197.81--0.780.78-3.13-3.132.842.844.884.88----------0.960.96
5.Mindpool Technologies LtdMINDPOOLOutsourced servicesOutsourced services30.1330.1371.1071.10301.29301.290.000.00--30.9430.946.926.921.651.650.550.552.572.57--0.000.005.515.51
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Disclaimer: Please note that the above table is for informational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing. The data is derived from Tickertape Stock Screener and is subject to real-time updates.

Selection criteria: Based on publicly available information | Sorted by market capitalisation from highest to lowest.

Overview of Top Smart Beta ETFs in India

ICICI Prudential Nifty 100 Low Vol 30 ETF

ICICI Prudential Nifty 100 Low Vol 30 ETF tracks 30 stocks from the Nifty 100 index that have shown lower price volatility. The fund selects companies based on their historical volatility patterns and rebalances periodically to maintain the low-volatility characteristic.

ICICI Pru Nifty Alpha Low- Volatility 30 ETF

ICICI Pru Nifty Alpha Low-Volatility 30 ETF combines two factors - alpha generation and low volatility - by tracking 30 stocks from the Nifty 100 universe. It selects companies that demonstrate both lower price fluctuations and potential for alpha generation over the benchmark.

DSP Nifty 50 Equal Weight ETF

DSP Nifty 50 Equal Weight ETF assigns equal weight to all 50 companies in the Nifty 50 index, unlike market-cap weighted indices. Each stock gets approximately 2% allocation, reducing concentration in larger companies and providing balanced exposure across constituents.

DSP Nifty Top 10 Equal Weight ETF

DSP Nifty Top 10 Equal Weight ETF tracks the 10 largest companies from the Nifty 50 index by market capitalization but assigns equal weight to each. It rebalances quarterly to maintain equal allocation, offering concentrated exposure to India's largest companies.

Mirae Asset Nifty Smallcap 250 Momentum Quality 100 ETF FoF

Mirae Asset Nifty Smallcap 250 Momentum Quality 100 ETF FoF invests in an ETF that tracks 100 stocks from the Nifty Smallcap 250 universe, selected based on momentum and quality factors like return on equity and earnings growth.

What are Smart Beta ETFs?

Smart Beta ETFs are exchange-traded funds that follow rule-based strategies designed to capture specific investment factors rather than relying on traditional market-capitalisation weighting. These funds track indices built around factors such as momentum, value, quality, low volatility, alpha, or equal-weight allocation. A Smart Beta ETF replicates its underlying factor index by holding the same stocks in the same proportion, allowing investors to follow a transparent, systematic approach to factor exposure. This structure makes Smart Beta ETFs a way to observe how different quantitative strategies perform across various market cycles without selecting individual securities.

What Is the Difference Between Market-Cap Weighted ETFs and Smart Beta ETFs?

Market-cap weighted ETFs track indices where each stock’s weight depends on its total market value, meaning larger companies dominate the portfolio. This approach reflects the structure of the broader market and changes automatically as market capitalisation shifts. Smart Beta ETFs, on the other hand, follow rule-based indices that tilt portfolios toward specific factors such as momentum, value, quality, low volatility, or equal weight. Instead of weighting companies by size, these ETFs use predetermined criteria to select and weight stocks. While market-cap ETFs mirror overall market movements, Smart Beta ETFs focus on factor behaviour, offering exposure to targeted characteristics within the equity market.

How to Invest in Smart Beta ETFs?

Here's how you can invest in Smart Beta ETFs using Tickertape -

  1. Create an account on the Tickertape or log in if you already have one.
  2. Open Tickertape Stock Screener
  3. Filter Smart Beta ETFs screener based on various parameters such as market cap, close price, past returns and more. You can review this data to evaluate each ETF’s performance trends and determine whether they align with your investment thesis.
  4. Once you’ve decided on an ETF, you can place a buy order through your brokerage account linked to Tickertape.

You can also stay updated on alerts and announcements for your favourite stocks with Tickertape Alerts. Further, you can analyse your overall portfolio and potential red flags in it by connecting it to Tickertape. Check out detailed analysis of your portfolio now!

Features of Smart Beta ETFs in India

Rules-Based Selection

Smart beta ETFs follow a systematic, transparent methodology defined at the time of launch. Stock selection and weighting are determined by predetermined rules based on specific factors, removing human bias and ensuring consistency in the investment approach.Alternative Weighting Methodology

Alternative Weighting Methodology

Unlike traditional market-cap weighted indices, smart beta ETFs use alternative weighting strategies that consider factors beyond company size. This creates portfolios with different risk-return profiles compared to conventional index funds.

Exchange Trading

These smart beta index ETFs are listed and traded on stock exchanges like NSE and BSE throughout the trading day, just like individual stocks. Investors need a Demat and trading account to buy and sell units, with prices fluctuating based on real-time supply and demand

Index-Based Construction

Smart beta products in India typically track custom indices created by index providers like NSE Indices Ltd, such as Nifty50 Value 20, Nifty100 Low Volatility 30, or Nifty200 Momentum 30. The ETF replicates the performance of these custom-built indices by holding underlying securities in specified proportions.

Periodic Rebalancing

Smart Beta indices undergo regular rebalancing to maintain their factor exposures and ensure portfolio constituents continue to meet the defined selection criteria, keeping the strategy aligned with its intended objectives.

Advantages of Investing in Smart Beta ETFs in India

Enhanced Diversification

Smart beta ETFs offer diversification benefits by selecting stocks based on multiple factors and sectors rather than just market capitalisation. This approach can help spread risk across various characteristics and reduce concentration in a few large-cap stocks.

Cost Efficiency

These smart beta index ETFs maintain lower expense ratios compared to actively managed mutual funds while offering more strategic exposure than plain index funds. They preserve the low-cost structure of passive investing while incorporating factor-based strategies.

Transparency

The rules-based approach provides complete transparency into how the portfolio is constructed, which stocks are selected, and why they receive specific weightings. Investors can clearly understand the investment methodology and holdings.

Potential for Better Risk-Adjusted Returns

By systematically targeting factors that have historically produced favourable returns, Smart Beta ETFs on the smart beta ETF list aim to deliver enhanced performance compared to traditional market-cap weighted indices over the long term, while managing specific risk dimensions.

Lower Emotional Bias

The systematic, rule-based nature eliminates emotional decision-making and human biases that can affect actively managed portfolios. This disciplined approach maintains consistency through different market conditions.

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Risks of Investing in Smart Beta ETFs in India

Factor Underperformance

Specific factors may underperform the broader market during certain periods or market cycles. For instance, value stocks might lag during growth cycles, momentum strategies can falter during market corrections, and no single factor consistently outperforms across all time periods.

Market Cycle Dependency

Different factors perform well under different market conditions, leading to cyclical performance patterns. A factor that works well in one environment may struggle in another, and some strategies may underperform for extended periods before recovering.

Concentration Risk

Single-factor ETFs on the smart beta ETF list concentrate exposure in one particular investment style, which can lead to overexposure to specific stocks, sectors, or characteristics. This concentrated positioning can amplify losses when the chosen factor experiences downturns.

Liquidity Constraints

Some smart beta ETFs in India may have lower trading volumes compared to large traditional ETFs, potentially resulting in wider bid-ask spreads. This can create hidden costs when buying or selling units, particularly for smaller or newer products.

Limited Track Record

Most smart beta ETFs on the smart beta ETF list in India are relatively new to the market, with limited historical performance data. Past performance may rely heavily on backtests rather than actual fund performance, making it challenging to evaluate long-term reliability.

Higher Costs Than Traditional ETFs

While more affordable than active funds, Smart beta index ETFs typically carry higher expense ratios than plain index ETFs due to the complexity of their factor-based methodologies and more frequent rebalancing requirements.

Factors to Consider Before Investing in Smart Beta ETFs

Investment Time Horizon

Smart Beta strategies tend to work better over longer time periods, as factors may underperform in the short term. A longer investment horizon allows the factor premiums to materialise and helps investors navigate through periods of cyclical underperformance.

Risk Tolerance Level

Different Smart Beta strategies carry varying risk profiles. Low volatility funds suit conservative investors seeking stability, while momentum or alpha-focused funds involve higher volatility and may be appropriate for those comfortable with larger fluctuations.

Factor Understanding

Each factor behaves differently across market conditions. Understanding how value, momentum, quality, or low volatility factors perform in various economic environments helps in selecting strategies aligned with investment expectations.

Portfolio Allocation Approach

Smart beta ETF India are often deployed as satellite allocations (typically 10-25% of equity exposure), complementing a core portfolio of broad-based index funds, rather than as complete portfolio replacements. This balanced approach captures factor premiums without overloading on specific risks.

Taxation on Smart Beta ETFs

Smart Beta ETFs are taxed based on how long the investment is held. Short-term and long-term gains are subject to different tax rules.

Holding Period Tax Treatment
Short-Term (< 12 months ) Gains taxed at a flat rate of 20% (increased from the previous 15%).
Long-Term (> 12 months) Gains taxed at 12.5%. Exemption applies to the first ₹1.25 Lakh of long-term gains across all equity assets in a financial year.

Conclusion

Smart beta ETFs broaden the landscape of exchange-traded strategies by offering rule-based factor exposure instead of relying solely on market-cap weighting. These funds help track how factors such as momentum, value, quality, or low volatility behave across different phases of the market, giving a clearer picture of index construction and performance patterns. If you want to study factor-based stocks, compare sectors, or analyse index components in more detail, the Tickertape Stock Screener provides data-led filters that make it easier to explore these themes.

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Frequently Asked Questions on Smart Beta ETFs

  1. What are smart beta ETFs?

    Smart beta ETFs are exchange-traded funds that use a rules-based approach to select and weight stocks based on factors such as value, momentum, quality, or low volatility instead of pure market-cap weighting.

  2. Which smart beta ETF is the best?

    As of 16th Jan 2026, top smart beta ETFs by market cap include ICICI Pru Nifty 100 Low Vol 30 ETF, ICICI Pru Alpha Low Vol 30 ETF, DSP Nifty 50 Equal Weight ETF, DSP Nifty Top 10 Equal Weight ETF, and Mirae Asset Nifty Smallcap 250 Momentum Quality 100 ETF FoF.

  3. How are smart beta ETFs different from regular ETFs?

    Regular ETFs track market-cap weighted indices, whereas smart beta ETFs use factor-based or rules-driven weighting strategies to offer different risk–return profiles.

  4. What does “factor investing” mean in smart beta ETF India?

    Factor investing targets characteristics like value, momentum, quality, or low volatility that have historically contributed to long-term returns. Smart beta ETFs systematically track these factors.

  5. Can smart beta ETFs invest in any type of stock?

    Smart beta ETFs typically use the stock universe of a major index but apply specific factor-based selection rules across large-cap, mid-cap, or sector-based universes.

  6. How do smart beta ETFs rebalance their portfolios?

    They rebalance quarterly, semi-annually, or annually depending on index rules, ensuring stocks continue to meet the required factor criteria.

  7. What are equal-weighted smart beta ETFs?

    Equal-weighted smart beta ETFs assign identical weights to all stocks, improving diversification and reducing concentration in large companies.

  8. What are low volatility Smart Beta ETFs?

    Low volatility smart beta ETFs invest in stocks with historically stable prices, designed to reduce portfolio fluctuations for risk-averse investors.

  9. How to sell smart beta ETFs?

    Smart Beta ETFs can be sold on the exchange using your demat account. A sell order placed during market hours executes at current market prices and settles normally.

Disclaimer: This article is for informational purposes only. The content of the article including securities/investment products mentioned if any, should not in any manner be construed as an investment advice, recommendation, offer, solicitation to buy/hold/sell any securities/investment products. The securities quoted if any, are for illustration only and are not recommendatory. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Please consult a SEBI-registered financial advisor before investing.